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<strong>Who</strong> <strong>Benefits</strong>? A Summary of the Economic Impacts That Result From the Trans Mountain Expansion Project Assessing the Impacts of Additional Tanker Traffic Beyond the upstream impacts associated with higher netbacks to oil producers, the TMEP will also generate other downstream economic benefits. One of these involves the economic impact of additional tanker traffic through Port Metro Vancouver. Trans Mountain estimates that 348 additional Aframax-size tankers will visit the port each year as a result of the TMEP, and each of these tankers will bring a significant amount of spending to the Vancouver region. Current estimates are that each tanker would spend an average of $366,000 per vessel. (See Table 5.) This estimate was provided by Trans Mountain and is based on information obtained from shipping agents operating in the port and assumed the costs of additional future services resulting from proposed enhancements. A number of these costs, such as the cost of bunkering, are market driven and are liable to fluctuate. Combining the spending figure with the vessel count equates to $127 million per year of spending, or $2.5 billion over the first 20 years of operations for the TMEP. In order to estimate the economic and fiscal benefits of this spending, the Conference Board again makes use of both Statistics Canada’s I/O model and its own proprietary models. The I/O model generates the GDP and job impacts, and the results are based on the breakdown of spending by vessel, as provided by Trans Mountain. Note, there are no direct impacts in this case, since the direct impacts represent operations on a foreign-flagged ship, and that activity would not be recorded in Canada. Instead, the I/O model measures the indirect impacts associated with the spending of each ship in Canada. The fiscal impacts are sourced from the Conference Board’s models. Table 6 describes the GDP, employment and fiscal impacts associated with additional tanker traffic at Port Metro Vancouver. In total, the additional tanker traffic would support 26,800 person years of employment, or 1,300 jobs per year on average. The vast majority (83 per cent) of these jobs would be located in British Columbia, while Alberta would see about 70 jobs per year supported by the additional Find Conference Board research at www.e-library.ca. 16
The Conference Board of Canada Table 5 Aframax Expenditures in Port ($) Per vessel 348 vessels per year Pilotage 43,456 15,122,688 Pilot disembark by helicopter 5,000 1,740,000 Harbour tugs 52,741 18,353,868 Boundary Pass escort 29,946 10,421,208 Juan de Fuca escort 20,000 6,960,000 Harbour dues 6,099 2,122,452 Marine navigation service fees 2,434 847,032 Launch 3,500 1,218,000 Customs clearance 850 295,800 Agents 6,210 2,161,080 Chamber of Shipping (WCMRC membership) 275 95,700 ISPS security charge 350 121,800 Courier 350 121,800 Garbage disposal 100 34,800 Food/supplies 6,600 2,296,800 Delivery charges 500 174,000 Crew shore leave 1,200 417,600 Crew repatriation 500 174,000 Bunkering 77,920 27,116,160 Contributions to WCMRC (BOCF) 108,000 37,584,000 Total 366,031 127,378,788 Source: Trans Mountain. tanker traffic. The majority of the jobs in British Columbia would be found in various water transportation activities, such as operating tugs and escorts, as well as pilot services. The jobs in Alberta are largely the result of interprovincial trade linkages between the two provinces, with some products that are sourced from Alberta being used by the tankers in British Columbia. Find Conference Board research at www.e-library.ca. 17
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